A-LevelAccountingMarginal and Absorption CostingOct/Nov 2009Paper 1 Q291 Mark

In January, a business had opening stocks of 25 200 units and closing stocks of 28 200 units. The profit calculated on marginal costing principles was $100 800 and that calculated on absorption costing principles was $120 300. What was the fixed overhead absorption rate per unit?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is D: $6.50.

Q: What topic does this question test?

This question tests Marginal and Absorption Costing in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$4.00

B$4.27

C$6.17

D$6.50

✓ Correct Answer

The correct answer is D: $6.50

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Marginal and Absorption Costing in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2009 examination, Paper 1 Variant 2.

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